Network Ten's proposed $145 million sale of out-of-home business Eye Corp is unlikely to proceed, following a termination from expected buyer Outdoor Media Operations.
Ooh!Media's parent company Outdoor Media Operations (OMO) agreed to buy the ad company from Ten Network Holdings in July this year for $145 million.
However, it is likely the deal will no longer go ahead, according to a statement from Ten on the ASX this morning.
"Ten Network Holdings (TEN) announces that it has today received formal notice from Outdoor Media Operations Pty Limited (OMO), a company owned by CHAMP III Funds, purporting to terminate the Share Purchase Agreement relating to the sale of Eye Corp Pty Limited. Details of the Share Purchase Agreement were announced to the market on 20 July 2012.
"While Ten has reserved its legal position regarding the purported termination, Ten and OMO remain in discussions with the aim of agreeing amended sale terms."
It was expected OMO would receive $120 million upon completion of the deal, with the remaining $25 million set to come in the following three years.
The sale was given the green light by the Australian Competition and Consumer Commission (ACCC) in September this year.
The deal was widely discussed in the industry, with reports naming APN News & Media and JCDecaux as potential buyers of the business. However, it is understood they dropped out shortly after entering the fray, which left OMO as the only company still vying for the business.
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